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HG 

4941 
H5 



UC-NRLF 

I III' 



$C 3b SD? 



YH 0016" 



BONDS 

OF THE GOVERNMENT OF THE 

UIVITED STATES OF AJMERICA 



W. B. HiBBs AND Company 

If 

HIBBS BUILDING 
WASHINGTON. D. C. 



COPYRISHTED. 19IO. BY W. B. HiBBS AND COMPANY, WASHINGTON. D. C. 



Frederic jl. 



,^ i- UNITED ST ATFS 



LOAN 



DATED 




4% LOAN OF 1925 



February 1, 1895 






2% CONSOLS OF 1930 



[Page One] 



After February 1, 1925, 
"at the pleasure of 
the United States." 



April 1, 1900 



RATE OF 
INTEREST 



After April 1, 1930, "at 
the pleasure of the 
United States," upon 
three months' notice. 



4% 



2% 



PRE-WAR 



INTEREST PAYABL 



February 1st, 
May 1st, 
August 1st, anc 
November 1st 



January 1st, 
April 1st, 
July 1st and 
October 1st. 



i 






OF AMERICA 

ISSUES 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



)n July 31, 1920, 
$118,489,900, out of a 
total issue of 
$162,315,400 



)n July 31, 1920, 
$599,724,050, out of a 
total issue of 
$646,250,150 



I 




Par 



Par 



The "bonds and the 
interest thereon 
shall be exempt 
from the pa}mient 
of all taxes or 
duties of the United 
States, as well as 
from taxation in 
any form by or 
under State, mu- 
nicipal, or local au- 
thority." — Act of 
Congress approved 
July 14, 1870 (16 
United States Stat- 
utes at Large, 272). 



These bonds are "ex- 
empt from the pay- 
ment of all taxes 
or duties of the 

, United States, as 
well as from taxa- 
tion in any form 
by or under State, 
municipail, or local 
authority." — Act of 
Congress approved 
March 14, 1900 
(31 United States 
Statutes at Large, 
46). 



This loan, issued under autliority of the Acts of Congress approved 
July 14, 1870, and January 14, 1875, was for the purpose of 
replenishing the depleted gold reserve of the Treasury and was 
emitted in two installments, viz.: (1) $62,315,400 par value of 
4% bonds, dated February 1, 1895, and redeemable at the 
pleasure of the United States, "thirty years from that date," 
which bonds were sold to "the parties to a contract" executed 
on February 8, 1895 (i. e., a syndicate of New Yorii bankers 
headed by J. P. Morgan & Company and August Belmont & 
Company) in payment for 3,500,000 ounces of gold; and (2) 
$100,000,000 par value of the same issue of 4% bonds, which were 
offered for public subscription from January 6 to' February 
5, 1896. In the case of this second instalment — of which J. P. 
Morgan & Company and their associates (the National City 
Bank of New York, Harvey Fisk & Sons and the Deutsche 
Bank of Berlin) were allotted $37,915,850 of bonds at a price of 
110.6877, and W. B. Hibbs & Company $500,000 at 110.76 and 
111.015— the coupons maturing on or before February 1, 1896, 
were detached and the bidders to whom the bonds were awarded 
were required to pay for them, as well as "all interest accrued 
thereon after the first day of February, 1896, up to the time 
of payment," in United States gold coin or gold certificates. 

The 4% Loan of 1925 was issued in two forms only: (1) Coupon 
bonds to bearer, in denominations of $50, $100, $500 and $1,000, 
which are exchangeable for registered bonds; and (2) Registered 
bonds — principal and interest — in denominations of $50, $100, 
$500, $1,000, $5,000 and $10,000, which are not exchangeable for 
coupon bonds to bearer. 

The Transfer Agent is the office of the Secretary of the Treasury, 
Washington. The transfer books are closed each year from 
January 15th to February 1st, April 15th to May 1st, July 15th 
to August 1st and from October 15th to November 1st, all 
inclusive. 

The bonds of this loan are receivable as security for the issue of 
circulating notes by National Banks and Federal Reserve Banks, 
but are subject to a circulation tax of one per cent. They are 
also accepted, like all other United States bonds, at par as 
security for Postal Savings deposits. 



Authorized under the Act of March 14, 1900, for the purpose of 
retiring United States 5% bonds issued under the Act of Janu- 
ary 14, 1875, 4% Consols of 1907 issued under .the Acts of July 
14, 1870, and January 20, 1871, and 3% bonds of 1908 issued 
under the Act of June 13, 1898. 

(1) Coupon bonds to bearer in denominations of $50, $100, $500 and 
$1,000; and (2) Registered bonds — principal and interest — in 
denominations of $50, $100, $500, $1,000, $5,000, $10,000 and 
$50,000. 

Coupon bonds are exchangeable for registered bonds, but registered 
bonds are not exchangeable for coupon bonds. 

This was the first loan in which the Government specified that both 
principal and interest shall be paid in United States gold coin. 
The bonds are payable "at the pleasure of the United States 
after thirty years from the date of their issue" "and when pay- 
ment is made the last numbers issued shall be paid first." 

The office of the Secretary of the Treasury is the Transfer Agent, 
and the transfer books are closed during the months of March, 
June, September and December of each year. 

The 2% Consols of 1930 are receivable as security for deposits of 
public money and for Postal Savings deposits. They are also 
available to National and Federal Reserve Banks as security 
for the issue of circulating notes. 



444174 



LOAN 



PANAMA CANAL LOAN in three 

maturities : 

(1) SERIES OF 1916-1936 



DATED 



MATURITY 



August 1, 1906 



(2) SERIES OF 1918-1938 



(3) SERIES OF 1961 



[Page Two] 



November 1, 



August 1, 1936. Re- 
deemable after August 
1, 1916, "at the pleas- 
ure of the United 
States." 



1908 



June 1, 1911 



November 1, 1838. Re- 
deemable after No- 
vember 1, 1918, "at 
the pleasure of the 
United States." 



June 1, 1961. Not re- 
deemable before ma- 
turity. 



RATE OF 
INTEREST 



2% 



2% 



3% 



f 

PRE-WAI 



INTEREST PAYABl 



February 1st, 
May 1st, 
August 1st an 
November 1st 



February 1st, 
May 1st, 
August 1st an 
November 1st 



March 1st, 
June 1st, 
September 1st 

and 
December 1st. 



ISSUES (Continued) 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



On July 31, 1920,- 
$48,954,180, out of a 
total issue of 
$54,631,980 



Par 



On July 31, 1920, 
$25,947,400, out 
total issue of 
$30,000,000 



of a 



Par 



On July 31, 1920, 

$50,000,000, which 
was the total amount 
issued. 



Par 



"Exempt from all 
taxes or duties of 
the United States, 
as well as from 
taxation in any 
form by or under 
State, municipal, or 
local authority." — 
Act of Congress ap- 
proved June 28, 
1902 (32 United 
States Statutes at 
Large, 484). 



"Exempt from all 
taxes or duties of 
the United States, 
as well as from 
taxation in , any 
form by or under 
State, municipal, or 
local authority." — 
Act of Congress ap- 
proved June 28, 
1902 (32 United 
States Statutes at 
Large, 484). 

"Exempt from all 
taxes or duties of 
the United States, 
as well as from tax- 
ation in any form 
by or under State, 
municipal, or local 
authority." — Act of 
Congress approved 
August 5, 1909 (36 
United States Stat- 
utes at Large, 117). 



The Panama Canal Loan, Series of 1916-1936, was authorized by 
Section 8 of the Act of Congress approved June 28, 1902, supple- 
mented by Section one of the Act of December 21, 1905, for the 
purpose of defraying the cost of construction of the Panama 
Canal. It was issued in two installments, viz.: (1) $30,000,000 
par value of 2% bonds, which were offered for public subscrip- 
tion from July 2 to July 20, 1906; and (2) $50,000,000 par 
value of the same series of 2% bonds offered from November 
18 to November 30, 1907. 

This Series of 1916-1936 is in two forms only: (a) Coupon bonds 
to bearer, in denominations of $20, $100 and $1,000; and (b) 
Registered bonds — principal and interest — in denominations of 
$20, $100, $1,000 and $10,000. 

Coupon bonds are exchangeable for registered bonds, but registered 
bonds are not exchangeable for coupon bonds. 

The Transfer Agent is the Office of the Secretary of the Treasury, 
Washington. The transfer books are closed each year from 
January 15th to February 1st, April 15th to May 1st, July 15th 
to August 1st and October 15th to November 1st. 

These bonds are "available to national banks as security for cir- 
culating notes upon the same terms as the 2 per cent consols 
of 1930, to wit: The semiannual tax upon circulating notes 
based upon the said bonds as security, will be one-fourth of 
one per centum. They will be receivable, like all other United 
States bonds, as security for public deposits in national banks" 
and in Federal Reserve banks, as well as security for Postal 
Savings deposits. 

The Panama Canal Loan, Series of 1918-1938, to the amount of 
$30,000,000 par value of 2% bonds, was issued under authority 
of Section 8 of the Act of Congress approved June 28, 1902, 
supplemented by Section one of the Act of December 21, 1905, 
and was offered for public subscription from November 18 
to December 5, 1908. 

The forms of the bonds and their denominations, the Transfer 
Agent, the dates when the transfer books are closed each year, 
the availability of the bonds to National and Federal Reserve 
Banks as security for the issue of circulating notes, as well as 
for the deposit of public money and for Postal Savings deposits, 
are the same as in the case of the Panama Canal Loan, Series 
of 1916-1936. 



I'nder the authority conferred by Section 39 of the Act of Congress 
approved August 5, 1909, supplemented by the Acts of February 
4, 1910, and March 2, 1911, $50,000,000 par value of the bonds of 
the Panama Canal Loan, Series of 1961, bearing interest at the 
rate of 3% per annum, were offered for public subscription from 
May 16 to June 17, 1911. 

This series was issued in two forms only: (1) Coupon bonds to 
bearer; and (2) Registered bonds — principal and interest — both 
in denominations of $100, $500 and $1,000. 

The principal is due on June 1, 1961, but the bonds contain no men- 
tion of any right of redemption prior to that date. 

The transfer books for this series are closed each year from Febru- 
ary 15th to March 1st, May 15th to June 1st, August 15th to 
September 1st and November 15th to December 1st. 

The bonds of this Series of 1961 "will not be available to national 
banks as security for circulating notes, but they will be receiv- 
able, like other United States bonds, as security for public de- 
posits in national banks" and Federal Reserve Banks, as well as 
for Postal 'Savings deposits. 



PRE-WAR 



LOAN 



THREE PER CENT CONVERSION 
BONDS 



FIRST LIBERTY LOAN, now con- 
sisting of four issues: 
(1) FIRST LIBERTY LOAN, 

3H% Gold Bonds of 1932-1947. 



DATED 



January 1, 1916, 

and 
January 1, 1917. 



June 15, 1917 



(2) Three conversions of the First 
Liberty Loan. Vide pages 6 and 7. 



[Page Three] 



MATURITY 




Thirty years from the 
date of issue. 



June 15, 1^47. Redeem- 
able, in whole or in 
part, at par and ac- 
crued interest, on any 
interest date on, or 
after June 15, 1932, 
upon three months' 
published notice. 



3% 



3^% 



INTEREST PAYABL 



January 1st, 
April 1st, 
July 1st and 
October 1st. 



WAR 



June 15th and 
December 15th 



ISSUES (Continued) 



AMOUNT OUTSTANDING 



ijOn July 30, 1920, 

$28,894,500, which 
was the total amount 
issued. 



Price at 
Which 
Issued 



Par 



.OANS 



Dn February 29, 1920, 
$1,410,074,400 out of 
an original issue of 
$1,989,456,650, the 
balance having been 
converted into subse- 
quent Liberty Loans 



» 



1 



Par 



EXEMPTION 



'Exempt as to prin- 
cipal and interest 
from the payment 
of all taxes and 
duties of the United 
States as well as 
taxes in any form 
by or under State, 
municipal, or local 
authority." — E x - 
cerpt from the 
statement on the 
face of a 3% Con- 
version bond. 



"Exempt, both as to 
principal and inter- 
est, from all taxa- 
tion, except estate 
or inheritance 

taxes, imposed by 
authority of the 
United States, or its 
possessions, or by 
any State, or local 
taxing authority." 
— Act of Congress 
approved April 24, 
1917 (40 United 
States Statutes at 
Large, 35). 

1 



REMARKS 



Section 18 of the Federal Reserve Act, approved December 23, 
1913, authorized the issue of (1) One-year Treasury notes and 
(2) Three per cent Conversion Bonds for the purpose of per- 
mitting any F"ederal Reserve Bank to retire, during the period 
from December 23, 1915, to December 23, 1940, all or any part 
of its notes in circulation. To that end, the Secretary of the 
Treasury was empowered, upon application of any Federal 

Reserve Bank approved by the Federal Reserve Board, to issue, 
in exchange for United States 2% bonds with circulation privi- 
lege but against which no circulation is outstanding, (1) One- 
year United States Gold Notes without circulation privilege to 
an amount not in excess of one-half of the 2% bonds tendered for 
exchange, and (2) Thirty-year, 3% bonds without circulation 
privilege for the balance of the 2% bonds thus tendered. Such 
issue was made conditional upon the Federal Reserve Bank 
obtaining such gold notes, obligating itself to purchase in gold 
from the Government, at the maturity of these notes and pro- 
vided so requested by the Secretary of the Treasury, an amount 
equal to those notes which it received in exchange for 2% 
bonds. This obligation is to remain in force for thirty years 
and, at each successive maturity of one-year notes purchased by 
any Federal Reserve Bank, that bank shall purchase such other 
one-year notes as may be tendered to it by the Secretary of 
the Treasury but not in greater amount than was originally 
issued to such bank. 

Under this provision there were issued "One-year Treasury Notes" 
in denominations of $1,000, $10,000 and $50,000, designated as 
the series of the dates both of the issue and maturity. These 
notes matured one year after the date of issue, bore interest 
at the rate of 3% payable quarterly on January 1st, April 1st, 
July 1st and October 1st, and both the principal and interest 
thereof were payable in gold coin. $27,362,000 of these notes 
were issued in 1916 and 1917, but the entire amount outstand- . 
ing was retired on January 1, 1919, and no new issue of these 
One-year Treasury Notes has since been made. 

The Thirty-year bonds — officially entitled "Three per cent Conver- 
sion Bonds" — are designated as the series of the years bot^ of 
issue and maturity (e. g., Series of 1916-1946). They are in 
two forms: (1) Coupon bonds to bearer and (2) Registered 
bonds — principal and interest — both in denominations of $100, 
$1,000, $5,000 and $10,000. The coupon bonds are exchangeable 
for registered bonds but the law prohibits registered bonds 
from being exchanged for coupon bonds. 

The Transfer Agent is the Office of the Secretary of the Treasury, 
Washington. The transfer books are closed on the last day of 
February, May, August and November and are reopened on 
the first day of April, July, October and January. 

These 3% Conversion bonds are not accepted as security for the 
issue of circulating notes by National or Federal Reserve Banks. 

Authorized, to an amount not exceeding $5,000,000,000, by the Act 
of Congress approved April 24, 1917 (the First Liberty Bond 
Act), the First Liberty Loan was offered, to the extent of 
$2,000,000,000, for public subscription from May 14 to June 
15, 1917. The actual subscriptions received amounted to 
$3,035,226,850, of which $1,989,456,650 were allotted. 

This loan was issued in two forms only: (1) Coupon bonds to 
bearer, in denominations of $50, $100, $500, and $1,000; and 
(2) Bonds registered as to principal and interest, in denomi- 
nations of $100, $500, $1,000, $5,000, $10,000, $50,000 and 
$100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable without charge. Registered bonds 
may likewise be transferred without charge. 

This issue was convertible, at par and accrued interest, into any 
subsequent Government loan — other than Treasury Certificates 
of Indebtedness and similar short-term obligations — issued dur- 
ing the war with Germany and bearing a higher rate of in- 
terest. It was, however, specifically prescribed that the ma- 
turity, interest dates and terms of redemption of the new bonds 
should be identical with those of the bonds to be converted into 
them. Under these provisions, conversion of the First Liberty 
Loan, 3Ji% bonds of 1932-1947 into the following Issues was 
subsequently permitted: (1) First Liberty Loan, Converted 
4% bonds of 1932-1947; (2) First Liberty Loan, Converted 
4^% bonds of 1932-1947; and (3) First Liberty Loan, Second 
Converted 4M% bonds of 1932-1947. All privilege of converting 
the First Liberty Loan, 3%% bonds of 1932-1947 has now lapsed. 

The 2%% bonds of the First Liberty Loan were not purchasable 
from the Bond Purchase Fund created by an amendment to the 
Second Liberty Bond Act. After July 1, 1920, they can, how- 
ever, be purchased and cancelled through the operation of the 
cumulative Sinking Fund created by Section 6 (a) of the Vic- 
tory Liberty Loan Act of March 3, 1919. 

The First Liberty Loan 3^4% bonds are not eligible as security for 
the issue of circulation' notes by National Banks and Federal 
Reserve Banks. On the other hand, they are "receivable as 
security for deposits of public money" and for Postal Savings 
deposits. 



WAR 



LOAN 



DATED 



MATURITY 



RATE OF 
INTEREST 



INTEREST PAYABLl 



SECOND LIBERTY LOAN, consist- 
ing of two issues: 
(1) SECOND LIBERTY LOAN, 
4%, Convertible Gold Bonds of 
1927-1942. 



November 15, 

1917 



(2) Second Liberty Loan, Converted 
414% bonds of 1927-1942. 
Vide page 7. 



THIRD LIBERTY LOAN, 4^4% 
Gold Bonds of 1928. 



[Page Fourl 



November 15, 1942. 
Redeemable, in whole 
or in part, at par and 
accrued interest, on 
any interest date on 
and after November 
15, 1927, at the option 
of the United States, 
upon six months' no- 
tice. 



4% 



May 9, 1918 



September 15, 1928.' 
"Not subject to call 
for redemption before 
maturity." 



454% 



May 15th and 
November 15th 



March 15th and 
September 15th 



LOANS (Continued) 



MOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



On February 29, 1920, 
$568,419,050, out of a 
total issue of 
$3,807,865,000 



On February 29, 1920, 
$3,739,076,050, out of 
a total issue of 
$4,176,516,850. 



Par, if 
fully paid 
for on or 
before 
Novem- 
ber 15, 
1917; or 
par and 
accrued 
interest if 
paid for 
after that 
date. 



Par, if 

fully paid 

for on or 

before 

May 9, 

1918; or 

par and 

accrued 

interest, 

if paid for 

after that 

date. 



"Exempt, both as to priii- 
cipul and interest from 
all taxation now or here- 
after imposed b.v the 
United States, any State, 
or any of the possessions 
of the United States, or 
by any local taxing au- 
thority, except (a) es- 
tate or inheritance taxes, 
and (b) graduated addi- 
tional income taxes, 
commonly known as sur- 
taxes, and excess profits 
and war-proflts taxes, 
now or hereafter im- 
posed by the United 
States, upon the income 
or profits of individuals, 
partnerships, associa- 
tions, or corporations. 
The interest on an 
amount of such bonds 
and certificates the prin- 
cipal of which does not 
exceed in the aggregate 
$.'>,000, owned by any in- 
dividual, partnership, as- 
sociation, or corporation, 
shall be exempt from the 
taxes provided for in 
sub-division (2i) of this 
section." — Section 7 of 
the Act of Congress ap- 
proved September 24, 
1917 (40 United States 
Statutes at Large, 291). 

For further exemptions 
vide page 1 11. 



"The bonds shall be ex- 
empt, l)oth as to princi- 
pal and interest, from 
all taxation now or here- 
after imposed by the 
I'nited Stsites, any State, 
or any of the possessions 
of the ITnited States, or 
by any local taxing au- 
thority, except (a) es- 
tate or inheritance taxes 
and (b) graduated addi- 
tional income taxes, com- 
monly known as sur- 
taxes, and excess-profits 
and war-profits taxes. 
now or hereafter im- 
posed by the United 
States, upon the income 
or profits of individuals, 
partnerships, associa- 
tions, or corporations. 
The interest on an 
amount of bonds and cer- 
tificates authorized by 
said act approved Sep- 
tember 24. 1917, or by 
said act as amended by 
said act anproved Anril 
4. 1918, the principal of 
which does not exceed 
in the aggregate S-l-OflO. 
owned by any ipdivnliml. 
partnership, association, 
or corporation, shall be 
exemnt from the taxes 
provided for in clause 
(h) above." — Treasury 
Department Circular 
No. 111. dated April 6, 
19T8. which offered the 
Third I.ihertv Txian for 
public subscription. For 
additional exemptions 
vide page 11. 



REMARKS 



The Act of Congress approved September 24, 1917, authorized the 
issuance of the Second Liberty Loan to the extent of 
.$7,.588,945,460, of which $3,063,945,460 were to be in lieu of 
unissued bonds authorized by the First Liberty Bond Act and 
$475,000,000 in lieu of unissued bonds previously authorized for 
the Panama Canal, naval construction and extraordinary ex- 
penditures. 

The Second Liberty liOan was offered for public subscription, to the 
extent of $.3,000,000,000, from October 1 to October 27, 1917. 
$4,617,532,300 were actually subscribed and $3,807,865,000 
allotted. 

Thi^ loan was issued in two forms only: (1) Coupon bonds to 
hearer, in denominations of $50, $100, $500, $1,000, $5,000 and 
$10,000; and (2) Bonds registered as to principal and interest, 
in denominations of $50, $100, $500, $1,000, $5,000, $10,000, 
$50,000 and $100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable, and registered bonds are transfer- 
able, all without charge. 

Thi>< issue was, and still is, convertible into the Second Liberty 
Loan, Converted 4M% bonds of 1927-1942 only. Such conver- 
sions must be made independently of any exchange of bonds. AU 
such conversions and exchanges are made on, or as of, an inter- 
est date and not at other times. 

Through amendment of the Second Liberty Bond Act by Section 6 
of the Third Liberty Bond Act, the Second Liberty Loan. 4% 
Convertible bonds of 1927-1942 could be purchased from the Bond 
Purchase Fund at an average price of par and accrued interest. 
Not more than one-twentieth of the bonds originally issued 
could be purchased during the first year after their date of 
issue, nor more than one-twentieth of the amount of bonds out- 
standing at the beginning of each period of twelve months there- 
after, and such purchases were to cease at "the expiration of 
one year after the termination of the war." 

On and after July 1, 1920, the bonds of this issue may be purchased 
and retired through the operation of the cumulative Sinking 
Fund already alluded to. 

The Second Liberty I>oan, 4% Convertible bonds of 1927-1942 are 
receivable as security for deposits of public money and for 
Postal Savings deposits, but they are not eligible as security 
for the issue of circulating notes by National and Federal Re- 
serve Banks. 

The Third Liberty Loan, authorized by the Act of Congress ap- 
proved September 24, 1917, as amended by the Act of April 4, 
1918 (the Third Liberty Bond Act), was offered for public sub- 
scription from April 6 to May 4, 1918, to the amount of 
$3,000,000,000. Subscriptions to the extent of $4,176,516,850 
were actually received and allotted. 

This loan is issued in two forms only: (1) Coupon bonds to bearer, 
in denominations of $50, $100. $.500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in denom- 
inations of $50, $100, $500, $1,000, $5,000, $10,000, $50,000 and 
$100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable, and registered bonds are transfer- 
able, all without charge. 

"The bonds of this issue are not entitled to any privilege of con- 
version into bonds bearing a higher rate of interest." 

Section 6 of the Third Liberty Bond Act, by amendment to the 
Second Liberty Bond Act, created a Bond Purchase Fund from 
which, until one year after the termination of war, the Third 
Liberty Loan bonds could be purchased to the extent of one- 
twentieth of the amount outstanding under the same conditions 
and restrictions as the Second Liberty Loan. 

On and after July 1. 1920, the bonds of the Third liberty Loan 
may be purchased and cancelled through the operation of the 
cumulative Sinking Fund already described. 

Bonds of this Issue "which have been owned by any person con- 
tinuously for at least six months prior to the date of his death, 
and which upon such date constitute part of his estate, shall, 
* * *, be receivable by the United States at par and accrued 
interest in pa.vment of any estate or inheritance taxes imposed 
by the United States, under or by virtue of any present or 
future law upon such estate or the inheritance thereof." 

They are, moreover, receivable as security for deposits of public 
money and for Postal Savings deposits, but are not eligible as 
security for the issue of circulating notes. 



WAR 



LOAN 



DATED 



MATURITY 



RATE OF 
INTEREST 



INTEREST PAYABL 



FOURTH LIBERTY LOAN, 4^% 
Gold Bonds of 1933-1938. 



October 24, 1918 



VICTORY LIBERTY LOAN, in two 
scncs * 

(1) VICTORY LIBERTY LOAN, 

4^% Convertible Gold Notes of 
1922-1923, and 

(2) VICTORY LIBERTY LOAN, 
334% Convertible Gold Notes of 
1922-1923. 



[Page Five] 



October 15, 1938. Re- 
deemable, in whole or 
in part, at par and ac- 
crued interest, on any 
interest date on or 
after October 15, 
1933, "at the pleasure 
of the United States," 
upon six months' no- 
tice. 



A%% 



May 20, 1919 
May 20, 1919 



April 15th and 
October 15th 



May 20, 1923 



May 20, 1923. 

Both series of 
notes are redeem- 
able, in whole or 
in part, at par and ac- 
crued interest, on 
June 15, 1922, or on 
December 15, 1922, at 
the option of the 
United States, upon 
four months' notice, 



43/4% 



June 15th and 
December 15th 

June 15th and 
December 15th. 
The final pay- 
ment of the lin- 
terest of both 
series will be 
made on May 
20, 1923 



LOANS (Continued) 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



On February 29, 1920, 
$6,534,880,200, out of 
a total issue of 
$6,992,927,100. 



Par, if 
fully paid 
for on or 
before 
October 
24, 1918; 
or par 
and ac- 
crued 
interest, 
if paid 
for after 
that date. 



On February 29, 1920, 
$4,459,014,266, out of 
a total issue of 
$4,497,830,850. 



Par 



Par 



EXEMPTION 



REMARKS 



"The bonds shall be ex- 
empt, both as to princi- 
pal and interest, from 
all taxation now or here- 
after imposed by the 
United States, any State, 
or any of the possessions 
of the United States, or 
by any local taxing au- 
thority, except (a) es- 
tate or inheritance taxes, 
and (b) graduated addi- 
tional income taxes, 
commonly known as sur- 
taxes, and excess profits 
and war-proflts taxes, 
now or hereafter im- 
posed by the United 
States, upon the income 
or profits of individuals, 
partnerships, associa- 
tionsi or corporations. 
The interest on an 
amount of bonds and 
certificates authorized 
by said Act approved 
September 24, 1917, and 
amendments thereto, the 
principal of which does 
not exceed in the aggre- 
gate $5,000, owned by 
any individual, partner- 
ship, association, or cor- 
poration, shall be exempt 
from the taxes provided 
for in clause (b) above." 
— Treasury Department 
Circular No. 121, dated 
September 28, 1918, 
whereby the Fourth Lib- 
erty Loan was offered 
for public subscription. 

For additional exemptions, 
including those during 
the two years following 
the termination of war 
with Germany, vide 
page 11. 

4%% NOTES 
"Exempt, both as to princi- 
pal and interest, from 
all taxation now or here- 
after imposed by the 
United States, any State, 
or any of the possessions 
of the United States, or 
by any local taxing au- 
thority, except (a) es- 
tate or inheritance taxes, 
and (b) graduated ad- 
ditional income taxes, 
commonly Unown as sur- 
taxes, and excess-profits 
and war-proflts taxes, 
now or hereafter im- 
posed by the United 
States, u|H>n the income 
or profits of individuals, 
partnerships, associa- 
tions, or corporations." 
3%% NOTES 
"Exempt, both as to prin- 
cipal and interest, from 
all taxation (except es- 
tate or inheritance 
taxes) now or hereafter 
imposed by the United 
States, any State, or any 
of the possessions of the 
United States, or by any 
local taxing authority." 
— Treasury Department 
Circular No. 138, dated 
April 21, 1919, which of- 1 
fered the Victory Lib- 
erty Loan for public sub- 
scription and which fixed 
for each series of notes 
the exemptions of which 
several alternatives were 
suggested in the Victory 
Liberty Ix>an Act, viz.: 
Act of Congress approved 
March 3, 1919 (40 United 
States Statutes at Large 

1 ntKiW 



The Fourth Liberty Loan, authorized by the Act of Congress ap- 
proved September 24, 1917, as amended by the Acts of April 
4, 1918, and July 9, 1918 (the Third and Fourth Liberty Bond 
Acts), and supplemented by the Act of September 24, 1918 (Sup- 
plement to Second Liberty Bond Act), was off'ered for public 
subscription from September 28 to October 19, 1918, to the 
extent of $6,000,000,000. The total subscriptions amounted to 
$6,992,927,100, all of which was allotted. 

This issue is in two forms only: (1) Coupon bonds to bearer, in 
denominations of $.50, $100, $500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in de- 
nominations of $50, $100, $500, $1,000, $5,000, $10,000, $50,000 
and $100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable, and registered bonds are transferable, 
all without charge. 

The bonds of the Fourth Liberty Loan were not granted any privi- 
lege of conversion into future Government issues bearing a 
higher rate of interest. 

These securities could be bought from the Bond Fund at the same 
prices and under the same conditions as the Second and Third 
Liberty Loan. On and after July 1, 1920, the bonds of the 
Fourth Liberty Loan may be purchased and cancelled through 
the operation of the cumulative Sinking Fund. 

In respect to receivability for the payment of estate or inheritance 
taxes imposed by the United States, and as security for deposits 
of public money and for Postal Savings deposits, as well as the 
fact that they do not bear any circulation privilege, the Fourth 
Liberty Loan Bonds are identical with those of the Second 
and Third Liberty Loans. 



The Victory Liberty Loan, authorized by the Act of Congress ap- 
proved September 24, 1917, as amended and supplemented by 
the Acts of April 4, July 9 and September 24, 1918, and 
March 3, 1919 (Victory Loan Act), was offered for public sub- 
scription from April 21 to May 10, 1919, to the amount of 
$4,500,000,000. It was oversubscribed, the total being 
$5,249,908,300, and $4,497,830,850 of notes were allotted. 
Both series are in two forms: (1) Coupon notes to bearer, in de- 
nominations of $50, $100, $500, $1,000, $5,000 and $10,000; and 
(2) Notes registered as to principal, and as to the interest 
payable after December 15, 1919, in denominations of $50, $100, 
$500, $1,000, $5,000, $10,000, $.50,000 and $100,000. These regis- 
tered notes had a single coupon attached covering the interest 
payable on December 15, 1919. 
Coupon notes, registered notes and notes of different denominations 
are interchangeable, and registered notes are transferable, all 
without charge. 
The 4947o and the 394% Victory Liberty Notes are inter-convertible, ' 
such "privilege of conversion extending to notes issued upon 
conversion as well as notes issued upon original subscription." 
They are not, however, convertible into any subsequent Gov- 
ernment loan. 
Until one year after the termination of the war with Germany, 
both issues of notes could be bought from the Bond Purchase 
Fluid at the same prices and under the same conditions as the 
bonds of the Second, Third and Fourth Liberty Loans. On 
and after July 1, 1920, they may be retired through the oper 
ation of the cumulative Sinking Fund created by Section 6 
(a) of the Victory Liberty Loan Act. 
Both series of notes are receivable as security for the deposit of 
public money and for Postal Savings deposits, but neither series 
bears the circulation privilege. 



CONVERSIONS OF 



LOAN 



DATED 



MATURITY 



RATE OF 
INTEREST 



4 



INTEREST PAYABL 



(1) FIRST LIBERTY LOAN, CON- 
VERTED 4% GOLD BONDS OF 
1932-1947. 



November 15, 

1917 



(2) FIRST LIBERTY LOAN, CON- 
VERTED 4^% GOLD BONDS 
OF 1932-1947. 



June 15, 1947. Redeem- 
able, in whole or in 
part, at par and ac- 
crued interest, on any 
interest date on or 
after June 15, 1932, 
upon three months' 
published notice. 



4% 



May 9, 1918 



June 15th and 
December 15th I 



June 15, 1947. Redeem 
able, in whole or in 
part, at par and ac- 
crued interest, on any 
interest date on or 
after June 15, 1932, 
upon three months' 
published notice. 



beginning on 
June 15, 1918 



June 15th and 
December IStn 



[Page Six] 



,3ERTY LOANS 



)UNT OUTSTANDING 



Price at 
Which 
Issued 



February 29, 1920, 
1138,757,100, out of a 
lotal issue of 
1.568,318,450 



Par 

and 
accrued 
interest 



February 29, 1920, 
[408,981,450, out of a 
lotal issue of 
1426,278,900 



Par 

and 
accrued 
interest 



EXEMPTION 



The exemption of these 
converted bonds, both as 
to principal and interest, 
is identical with that of 
the Second Liberty Loan, 
4% Convertible bonds of 
1927-1942. 

This exemption is fully 
set forth in Treasury 
Department Circular No 
93, dated October 19, 
1917, which announced 
the conditions governing 
the initial conversion of 
the 3J4% Gold Bonds of 
the First Liberty Loan. 
Specific reference to this 
circular is made on the 
face of each First Lib- 
erty Loan, Converted 
4% bond of 19321947. 



The exemption of this is- 
sue, both as to principal 
and interest, is identical 
with that of the Third 
Liberty Loan, i%% 
bonds of 1928. 

This exemption is fully set 
forth in Treasury De- 
partment Circular No. 
114, dated May 9, 1918, 
which annoimced the 
conditions governing the 
conversion of the 3%% 
Gold Bonds of 1932-1947 
of the First Liberty 
Loan, the converted 4% 
Gold Bonds of 1932-1947 
of the First Liberty 
Loan, and the 4% Con- 
vertible Gold Bonds of 
1927-1942 of the Second 
Liberty Loan. 

Specific reference to Sub- 
division X of that cir- 
cular — in which a full 
description is given of 
this issue — is made on 
the face of each Firsf 
Liberty Loan, Converted 
4M% Gold Bond of 
1932-1947. 



REMARKS 



The Converted, 4%, 1932-1947, bonds of the First Liberty Loan, 
authorized by the Acts of Congress approved April 24, 1917, 
and September 24, 1917, consist of the First Liberty Loan, 
3%% bonds of 1932-1947 converted into the rate of interest of 
the Second Liberty Loan. 

They were issued in two forms: (1) Coupon bonds to bearer, in 
denominations of $50, $100, $500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in de- 
nominations of $50, $100, $500, $1,000, $5,000, $10,000, $50,000 
and $100,000. 

Coupon bonds, registered bonds and bonds of dilTerent denomina- 
tions are interchangeable without charge. Registered bonds are 
likewise transferable without charge. 

This issue is convertible into the First Liberty Loan, 4M% bonds of 
1932-1947, until otherwise prescribed by the Secretary of the 
Treasury. Such conversion, as well as all exchanges of coupon 
bonds for registered bonds and vice versa, will, after June 30, 
1919, be made on, or as of, an interest date only. Moreover, 
exchanges must be made independently of conversions and by 
a separate operation. 

The Converted, 4% bonds of 1932-1947 of the First Liberty Loan are 
receivable as security for deposits of public money and for 
Postal Savings Deposits, but are not eligible for security for 
the issue of circulating notes. 

These converted bonds could be bought from the Bond Purchase 
Fund or may be retired through the operation of the cumulative 
Sinking Fund in the same manner as prescribed lor the Second 
Liberty Loan, 4% Convertible bonds of 1927-1942. 



This issue, authorized by the Acts of Congress approved April 24, 
1917, and September 24, 1917, as amended by the Act of Con- 
gress approved April 4, 1918, consists of the First Liberty 
Loan, i%% bonds of 1932-1947 and, upon conversion, of the 
First Liberty Loan, Converted 4% bonds of 1932-1947 converted 
into the rate of interest of the Third Liberty Loan as author- 
ized by the Acts of Congress approved September 24, 1917, and 
April 4, 1918, creating the Third Liberty Loan. 

This issue is in two forms only: (1) Coupon bonds to bearer, in 
denominations of $50, $100, $500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in de- 
nominations of $50, $100, $500, $1,000. $5,000, $10,000, $50,000 
and $100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable, and registered bonds are transferable, 
all without charge. 

"The bonds of this issue are not entitled to any privilege of con- 
version into bonds bearing a higher rate of interest." 

These First Liberty Loan, Converted 4M% bonds of 1932-1947 could 
be bought from the Bond Purchase Fund or, after July 1, 1920, 
may be retired by the operation of the cumulative Sinking Fund 
In the same manner and under the same conditions as the Third 
Liberty Loan. 

Ill respect to their receivability for the payment of United States 
estate or inheritance taxes and as security for deposits of 
public money and for Postal Savings deposits, as well as their 
non-eligibility as security for the issue of circulating notes by 
National and Federal Reserve Banks, these converted bonds are 
identical with those of the Third Liberty Loan. 



CONVERSIONS OF 



LOAN 



DATED 



MATURITY 



RATE OF 
INTEREST 



INTEREST PAYABl 



(3) FIRST LIBERTY LOAN, 
SECOND CONVERTED 4^4% 
GOLD BONDS OF 1932-1947. 



(4) SECOND LIBERTY LOAN, 
CONVERTED 4%% GOLD 
BONDS OF 1927-1942. 



October 24, 1918 



May 9, 1918 



[Page Seven] 



June 15, 1947. Redeem- 
able, in whole or 
in part, at par and ac- 
crued interest, on and 
after June 15, 1932, 
upon three months' 
published notice. 



November 15, 1942. Re- 
deemable, in whole or 
in part, at par and ac- 
crued interest, on any 
interest date on or 
after November 15, 
1927, at the option of 
the United States, 
upon six months' no- 
tice. 



4J4% 
beginning 
on Decem- 
ber 15, 1918 



454% 
beginning on 
May 15, 1918 



June 15th and 
December 15tl: 



May 15th and 
November 15t 



i 



I 



LIBERTY LOANS (Continued) 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



On February 29, 1920, 
$3,492,150, which was 
the total amount 
issued 



Par 

and 
accrued 
interest 



On February 29, 1920, 
$2,836,887,600, out of 
a total issue of 
$3,170,395,350. 



Par 

and 
accrued 
interest 



¥ 



The exemption of this is- 
sue, both as to principal 
and interest, is identical 
with that of the Fourth 
Liberty Loan, 4H% 
bonds of 1933-1938. 

This exemption is fully se( 
forth in Treasury I>e- 
partment Circular No. 
123. dated October 24, 
1918, which announced 
the conditions governing 
the conversion of First 
Liberty Loan, 3^6% 
bonds of 1932-1947 into 
the present issue. 

Specific reference to Snb- 
division VII of that cir- 
cular — in which a de- 
tailed description of this 
issue is given — is madf 
on the face of each First 
Liberty Loan, Second 
Converted 4M% gold 
bond of 1932-1947. 



The exemption of these 
converted bonds, both a^ 
to principal and interest, 
is identical with that of 
the Third Liberty Loan, 
4M% bonds of 1928. 

This exemption is set forth 
in detail in Treasury De- 
partment Circular No. 
114, dated May 9, 1918, 
which annoimced the 
conditions governing the 
conversion into the pres- 
ent issue of the 4% 
Convertible Gold Bonds 
of 1927-1942 of the Sec- 
ond Liberty Loan, a,f 
well as certain bonds of 
the First Liberty Loan. 

Specific reference to Sub 
division XI of that cir 
cular — wherein a full de- 
scription of this issue is 
given — is made on the 
face of all Second Lib- 
erty Loan, Converted 
4M% gold bonds of 
1927-1942. 



This issue, authorized by the Acts of Congress approved April 24, 
1917, and September 24, 1917, as amended by the Acts of Con- 
gress approved April 4, 1918, and July 9, 1918, consists of the 
First Liberty Loan, 3^6% bonds of 1932-1947 converted into the 
rate of interest of the Fourth Liberty Loan. 

The securities are in two forms only: (1) Coupon bonds to bearer, 
in denominations of $50, $100, $500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in de- 
nominations of $50, $100, $500, $1,000, $5,000, $10,000, $50,000 
and $100,000. 

The coupon bonds, registered bonds and bonds of different denom- 
inations are interchangeable, and registered bonds are trans- 
ferable, all without charge. 

"The bonds of this issue are not entitled to any privilege of con- 
version into bonds bearing a higher rate of interest." 

These First Liberty Loan, Second Converted, 4M% bonds of 1932- 
1947 could be bought from the Bond Purchase Fund or, after 
July 1, 1920, retired b.v the operation of the cumulative Sinking 
Fund in the same manner and under the same conditions as the 
bonds of the Fourth Liberty Loan. 

In respect to their receivability for the payment of United States 
estate or inheritance taxes and as security for the deposit of 
public money and for Postal Savings deposits, as well as their 
non-eligibility as security for the issue of circulating notes by 
National and Federal Reserve Banks, this issue is identical with 
the Fourth Liberty Loan, 4M% bonds of 1933-1938. 



This issue, authorized by the Act of Congress approved September 
24, 1917, as amended by the Act of Congress approved April 4, 
19l8, consists of the Second Liberty Loan, 4% Convertible Gold 
Bonds of 1927-1942 converted into the rate of interest of the 
Third Liberty Loan. 

The securities are in two forms only: (1) Coupon bonds to bearer, 
in denominations of $50, $100, $500, $1,000, $5,000 and $10,000; 
and (2) Bonds registered as to principal and interest, in de- 
nominations of $50, $100, $500, $1,000, $5,000, $10,000, $50,000 
and $100,000. 

Coupon bonds, registered bonds and bonds of different denomina- 
tions are interchangeable, and registered bonds are transfer- 
able, all without charge. 

"The bonds of this issue are not entitled to any privilege of con- 
version into bonds bearing a higher rate of interest." 

These Second Liberty Loan, Converted 4M% bonds of 1927-1942 
could be bought from the Bond Purchase Fund or, after July 1, 
1920, may be retired by the operation of the cumulative Sinking 
Fund in the same manner and under the same conditions as the 
Third Liberty Loan. 

Insofar as concerns their receivability for the payment of United 
States estate or inheritance taxes and as security for deposits of 
public money and for Postal Savings deposits, as well as their 
non-eligibility as security for the issue of circulating notes 
by National and Federal Reserve Banks, this issue is identical 
with the Third Liberty Loan. 



I 



CERTIFICATES OF 



LOAN 



DATED 



MATURITY 




INTEREST PAYABI 



TREASURY CERTIFICATES OF 

INDEBTEDNESS, in ten series: 

(1) SERIES T 10 

(2) SERIES T D-1920 

(3) SERIES T M-1921 

(4) SERIES G 1920 

(5) SERIES H 1920 

(6) SERIES A 1921 

(7) SERIES T J-1921 

(8) SERIES B 1921 

(9) SERIES T M 2-1921 



September 15, 

1919 
January 2, 1920 

March 15, 1920 

April 15, 1920 
May 17, 1920 
June 15, 1920 
June 15, 1920 

July 15, 1920 
July 15, 1920 



September 15, 1920 

December 15, 1920 

March 15, 1921 

October 15, 1920 
November 15, 1920 
January 3, 1921 
June 15, 1921 

January 15, 1921 
March 15, 1921 



454% 

43/^% 

^%% 

5/2% 

53/4% 

6% 

53.4% 
53/i% 



March 15th and 

September 15tl 
June 15th and 

December 15tl' 
March 15th and 

September 15tl 
At maturity 
At maturity 
At maturity 
June 15th and 

December 15tl 
At maturity 
At maturity 



Tax Certificates ("denoted by the letter T, the seco 

letter indicating the month of maturity) 

Loan Certificates 

Special Issues 



(10) SERIES C 1921 



August 16, 1920 



Total 
August 16, 1921 



Certificates of Indebtedness issued 
under the PITTMAN ACT. 



Various dates 
beginning on 
August 20, 
1918 



One year after date of 
issue 



6% 



2% 



[Page Eight] 



February 16th an 
August 16th 



January 1st and 
July 1st 



f 



INDEBTEDNESS 



iMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



mount issued: 


Par 


$657,469,000 


and 




accrued 


$703,026,00a 


interest 




for all 


$201,370,500 


Certifi- 


$170,633,500 


cates of 


$102,865,000 


Indebted- 


$176,604,000 


ness. 


$242,517,000 




$126,783,500 


« 


$ 74,278,000 




otal $2,455,546,500 


» 


pproximate amount 




outstanding on 




July 31, 1920: 




$1,866,660,500 




566,886,000 




20,000,000 





$2,453,546,500 

mount of issue not yet 
determined, but about 
$150,000,000. 



n July 31, 1920, 
$259,375,000, which 
was the total amount 
issued. 



Par 

and 
accrued 
interest 



All these Certificates of 
Indebtedness "shall be 
exempt, both as to prin- 
cipal and interest from 
all taxation now or here- 
after imposed by the 
United States, any State, 
or any of the posses- 
sions of the United 
States, or by any local 
taxing authority, except 
(a) estate or inheritance 
taxes, and (b) gradu- 
ated additional income 
taxes, commonly known 
as surtaxes, and excess 
profits and war-profits 
taxes, now or hereafter 
imposed by the United 
States, upon the income 
or profits of individuals, 
partnerships, associa- 
tions, or corporations. 
The interest on an 
amount of such bonds 
and ^ certificates the 
principal of which does 
not exceed in the aggre- 
gate $5,000, owned by 
any individual, partner- 
ship, association, or cor- 
poration, shall be exempt 
from the taxes provided 
for in subdivision (b) of 
this section." — Section 7 
of the Act of Congress 
approved September 24, 
1917 (40 United States 
Statutes at Large, 291). 



The same as the preceding 
Certificates of Indebted- 



ness. 



Section 5 of the Act of Congress approved September 24, 1917 

the Second Liberty Bond Act — empowered the Secretary of the 
Treasury to borrow from time to time, on the credit of the 
United States, in order to meet public expenditures authorized 
by law, such sums as he deems necessary and to issue therefor, 
at not less than par, Certificates of Indebtedness payable not 
later than one year from the date of issue. The forms, con- 
ditions, rates of interest and redemption features were to be 
determined by him, but a limitation of $4,000,000,000 was placed 
upon the amount of Certificates of Indebtedness which he was 
authorized to issue under the First and Second Liberty Bond 
Acts. Sectioa 4 of the Act of Congress approved April 4, 1918 
(the Third Liberty Bond Act) — increased that amount to 
$8,000,000,000, and Section 3 of the Act of Congress approved 
March 3, 1919 — the Victory Liberty Loan Act— further increased 
that amount to $10,000,000,000. 
Under authority conferred by the above-mentioned Act of Septem- 
ber 24, 1917, as amended, a number of series of Certificates of 
Indebtedness have been issued — principally through Federal Re- 
serve Banks. Certain series have already matured; those hero 
enumerated are still outstanding. 
These Certificates of Indebtedness are issued in two forms: (1) 
Certificates with coupons attached; and (2) Certificates withou 
coupons, in which case the interest is paid at the date of ma 
turity of the certificate. Both forms are issued in denomina 
tions of $500, $1,000, $5,000, $10,000 and $100,000. 
The following series have coupons attached, viz.: 

T-10, two coupons, one payable March 15, 1920, the other Sep 
tember 15, 1920. T D-1920, two coupons, one due June 

15, 1920, the other, December 15, 1920. T M-1921, two 

coupons, one payable September 15, 1920, the other, March 
15, 1921. T J-1921, two coupons, one due December 15, 

1920, the other, June 15, 1921. T M 2-1921, one coupon 

payable March 15, 1921. G 1921, two coupons, one due 

February 16, 1921, the other August 16, 1921. 
There are no coupons attached to these series: 

F 1920, G 1920, H 1920, A 1921 and B 1921. 
The following series are receivable, at par and accrued interest, in 
payment of Income and Profits taxes : T-10, T D-1920, T M-1921, 
T J-1921 and T M 2-1921. None of the other series are thu.s 
receivable. 
None of the Certificates of Indebtedness enumerated in this list 
bear the circulation privilege. 

Authorized by the Act of Congress approved September 24, 1917 
(the Second Liberty Bond Act), as amended by the Act of 
April 4, 1918, and by the Act of Congress approved April 23, 
1918 (the Pittman Act), these Certificates of Indebtedness were 
issued as security for the bank notes emitted by the Federal 
Reserve Banks in substitution for the silver dollars melted or 
broken up and sold as bullion under authority of the Pittman 
Act, the purpose being to prevent a contraction of the currency 
in circulation. 
During the period of slightly niore than 18 months following the 
approval of the Pittman Act and terminating on October 31, 
1919, $260,121,554 standard silver dollars were melted, 
$256,944,000 silver certificates were withdrawn from circula- 
tion and cancelled, and $257,899,845 bank notes were issued by 
Federal Reserve Banks, of which $256,243,845 were outstanding 
on October 31. 1919. 
The bank notes of the Federal Reserve Banks thus issued were 
secured by the following: 

4% Loan of 1925 $ 1,768,000 

2% Consols of 1930 4,523,100 

Panama Canal Loan, Series of 1916-1936 130,300 

Panama Canal Loan, Series of 1918-1938 258,000 

Special Certificates of Indebtedness, 2% 255,475,000 



Total $262,154,400 

The operation of the Pittman Act, coupled with the removal on 
May 6, 1919, of all restrictions against the export of silver, 
resulted in freeing the silver market from the control of war 
measures and, by permitting the shipment of silver to other 
countries, has contributed to stabilize the price and encourage 
the production of silver, to permit the use of that metal in 
settlement of trade balances adverse to the United States and 
to provide silver both for commercial use and subsidiary coin- 
age, since the Pittman Act prescribed that, for every silver 
dollar sold as bullion, 'silver equal to 371.25 grains of pure 
silver should be purchased at the fixed price of $1.00 per ounce 
and that all such silver in excess of the amount re-sold should 
be coined into standard silver dollars. 

These special Certificates of Indebtedness are registered in the name 
of the Federal Reserve Bank to which they are issued and are 
in such denominations as are required in each case. Since 
they are issued for a specific purpose, they are not receivable 
for the payment of any taxes nor do they bear the cL^.^datioi] 
privilege. 



OTHEP 



LOAN 



DATED 



MATURITY 



RATE OF 
INTEREST 



INTEREST PAYABI 



in 



WAR-SAVINGS SECURITIES 

two categories: 
WAR-SAVINGS CERTIFICATES in 

three series: 

(a) Series of 1918, 

(b) Series of 1919, 

(c) Series of 1920. 



Undated 



(2) TREASURY SAVINGS 
TIFICATES in two serifes: 

(a) Series of 1919, 

(b) Series of 1920. 



CER- 



Undated 



Five years after January 
1st of the year during 
which they are issued. 



[Page Nine] 



Five years after January 
1st of the year during 
which they are issued. 



4% com- 
pounded 
quarterly 
for the aver- 
age period 
to maturity 
of the certifi- 
cates issued 
during the 
year 



At maturity 



At maturity- 



« 



ISSUES 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



Dn 



February 29, 1920, 
Series of 1918: 
$743,502,199.62. 
Series of 1919 and 
1920: 
$132,941,030.17. 

Total, 
$876,443,229.79 



Various "War Savings Certifi- 
prices cates shall be ex- 

depend- empt, both as to 
ing upon principal and inter- 
the est from aU taxa- 

month tion now or here- 

when after imposed by 

issued the United States, 

any State, or any 
of the posses- 
sions of the United 
States, or by any 
local taxing au- 
thority, except (a) 
estate or inherit- 
ance taxes, and (b) 
graduated addi- 
tional income taxes, 
commonly known 
as surtaxes, and ex- 
cess profits and 
war-profits taxes, 
now or hereafter 
imposed by the 
United States, upon 
the income or prof- 
its of individuals, 
partnerships, asso- 
ciations, or corpo- 
rations. The inter- 
est on an amount of 
bonds and certifi- 
cates, authorized by 
said act of Septem- 
ber 24, 1917, the 
principal of which 
does not exceed in 
the aggregate 

$5,000, owned by 
any individual, part- 
nership, association, 
or corporation, shall 
be exempt from the 
taxes provided for 
in clause (b) 
above." — Treasury 
Department Circu- 
lar No. 94 (War- 
Savings Circular 
No. 1), dated No- 
vember 15, 1917. 
The exemption of the 
Treasury Savings 
Certificates is iden- 
tical with that of 
the War-Savings 
Certificates except 
that, after the 
phrase "said act ap- j 
proved September 
24, 1917," the 
words "and amend- 
ments thereto," are 
inserted. — Treasury 
Department Circu- 
lar No. 143, dated 
July 1, 1919. 



United States War-Savings Certificates were originally authorized 
to the extent of $2,000,000,000 maturity value by the Act of 
Congress approved September 24, 1917 (the Second Liberty 
Bond Act), which limited to $100 the amount of such certifi- 
cates that could be sold at any given time to any one person 
and to $1,000 the amount which could be lawfully held by any 
single individual. 
This act was subsequently amended by the Act of September 24, 
1918 (Supplement to Second Liberty Bond Act), which increased 
the amount authorized to be issued to $4,000,()00,000 and substi- 
tuted for the previous limitation a provision forbidding any 
single person from holding at any one time "war savings cer- 
tificates of any one series to an aggregate amount exceeding 
$1,000." 
These War-Savings Certificates were first offered for sale by the 
Secretary of the Treasury on November 15, 1917. When one 
or more War-Savings Certificate stamps of the same series as 
the certificates themselves have been affixed, the certificates 
constitute an obligation of the United States. Each certificate 
contains spaces for 16 War-Savings Certificate stamps and each ' 
stamp, upon being affixed, will have a value of $5 upon mar 
turity of the certificate. These War-Savings Certificate stamps 
may be purchased at any post office or other designated agency 
at prices ranging from $4.12 for January to $4.23 for December 
of the year' of issue, depending upon the month when the stamps 
are bought. These prices increase one cent in each successive 
month during the year of issue and are based upon such a sum 
as will, together with interest at 4% compounded quarterly for 
the average period to maturity, amount to $5 at the date of 
maturity of the certificate itself. 
War Thrift cards with 16 Thrift Stamps of 25 cents each affixed may 
be exchanged at the same agencies for one War-Savings Certifi- 
cate stamp upon payment of the dilTerent between $4 and thu 
current price of issue of the latter stamps during that month. 
In every instance "the name of the owner of each War-Savings 
Certificate must be written upon such certificate at the time 
of the issue thereof." 
These certificates may be registered without charge at any post 
office of the first, second or third class under such regulations 
as are prescribed by the Postmaster General. Certificates thus 
registered will be paid at maturity only at the post office where 
registered. Unless registered, the United States will be exempt 
from liability for payment of any certificate made to an indi- 
vidual other than the rightful owner. 
On January 1st of the fifth year after the year of issue, holders of 
War-Savings Certificates are entitled to be reimbursed by the 
Treasury Department or by any money order post office at the 
rate of $5 for each War-Savings stamp affixed to the certifi- 
cate then surrendered. 
These certificates may be redeemed prior to their maturity, at the 
option of the holder, at prices for each War-Savings stamp 
affixed ranging from $4.12 for the month of January of the year 
of issue to $4.71 for the December immediately preceding the 
date of maturity. 
"War-Savings Certificates are not transferable and will be payable 
only to the respective owners named thereon, except in the 
case of the death or disability of such owner." Moreover, they 
"will not be receivable as security for deposits of public money 
and will not bear the circulation privilege." 
So great was the demand for War-Savings Securities in single de- 
nominations larger than $5 that the Treasury, acting under 
authority of the Act of Congress approved September 24, 1917, 
as amended, announced on July 1, 1919 (Treasury Department 
Circular No. 143) the issue of War-Savings Certificates in two 
additional denominations of $100 and $1,0(M) maturity value, to 
be known as "Treasury Savings Certificates." This issue is 
the counterpart of the War-Savings Certificates and forms a 
portion of the series of the former, having "corresponding 
terms as to increasing sales and redemption value each month 
and the same period of maturity." All Treasury Savings Cer- 
tificates are registered, the records are kept at the Treasury 
instead of in post offices and redemption is made by the Treas- 
ury alone. "Like other war-savings certificates, these certifi- 
cates may be redeemed prior to maturity, but they differ in that 
they cannot be redeemed before the second calendar month fol- 
lowing the month in which they were purchased." 
Comprehensive accounts of War-Savings and Treasury Savings Cer- 
tificates will be found in the Reports of the Secretary of the 
Treasury for the fiscal years ended June 30, 1918, and 1919, 
and full particulars are given in the following Treasury De- 
partment Circulars, Loans and Currency: Nos. 94, 95, 96, 101, 
108, 126, 128, 1.30. 131, 143, 149, 169, 170, 171, 172. 173, 178, 
181 and Supplement to Department Circular No. 172 of De- 
cember 10, 1919. 
The proceeds derived from the sale, and the retirements, of War- 
Savings securities of both issues are approximately as follows: 

Receipts Redemption 

1917 $ 10,236,000 None 

1918 961,677,000 $ 18,086.000 

1919 160,306,000 217,011,000 

1920 (to March 12th) . 17,219,000 38,990,000 



Total $1,149,138,000 $274,087,000 



OTHEB 



LOAN 


DATED 


MATURITY 


RATE OF 
INTEREST 


1 

INTEREST PAYAI 


POSTAL SAVINGS BONDS in 










nineteen series: 










First Series v 


July 1, 1911 


July 1, 1931 


2/2% 


" 


Second Series 


January 1, 1912 


January 1, 1932 


2K% 


, 


Third Series 


July 1, 1912 


July 1, 1932 


2/2% 




Fourth Series 


January 1, 1913 


January 1, 1933 


2/2% 




Fifth Series 


July 1, 1913 


July 1, 1933 


2/2% 




Sixth Series 


January 1, 1914 


January 1, 1934 


2^2% 




Seventh Series 


July 1, 1914 


July 1, 1934 


25^% 




Eighth Series 


January 1, 1915 


January 1, 1935 


2/2% 




Ninth Series 
Tenth Series 


July 1, 1915 
January 1, 1916 


July 1, 1935 
January 1, 1936 


2/2% 
2^/4% 


January 1st an 
July 1st 


Eleventh Series 


July 1, 1916 


July 1, 1936 


- 2/2% 


Twelfth Series 


January 1, 1917 


January 1, 1937 


2y2% 




Thirteenth Series 


July 1, 1917 


July 1, 1937 


2/2% 




Fourteenth Series 


January 1, 1918 


January 1, 1938 


2/2% 




Fifteenth Series 


July 1, 1918 


July 1, 1938 


2/2% 




Sixteenth Series 


January 1, 1919 


January 1, 1939 


2/2% 




Seventeenth Series 


July 1, 1919 


July 1, 1939 


2K% 




, Eighteenth Series 


January 1, 1920 


January 1, 1940 


21^ % 




Nineteenth Series 


July 1, 1920 


July 1, 1940 

Redeemable at par, at 
the pleasure of the 
United States, after 
one year from the 
date of issue. 


2/2% 




SOLDIERS AND SAILORS' CIVIL 


July 1, 1918 


July 1, 1928. Redeem- 


3/2% 


January 1st and 


RELIEF BONDS. 




able, at the pleasure of 
the United States, in 


from the date 
of issue if 


July 1st 


 , 




whole or in part, on 
any semi-annual in- 


made on an 
interest date, 




1 


" 


terest date or dates 
one year or more after 
the termination of the 
war with Germany, 
upon three months' 


or, if issued 

at any other 

time, from 

the interest 

date next pre- 




• 




notice. 


ceding the 




- 






date of issue. 






, 






i 


* 

[Page Ten] 






1 


\ 



ISSUES (Continued) 



AMOUNT OUTSTANDING 



Price at 
Which 
Issued 



EXEMPTION 



REMARKS 



On August 17, 1920, 



$ 



41,900 

417,380 

854,860 

1,074,980 

1,116,880 

1,129,820 

872,240 

933,540 

865,500 

938,000 

906,700 

887,960 

718,800 

302,140 

198,180 

91,080 

103,140 

86,260 

72,800 



Total: 

$11,612,160 



Par 
for all 

series of 
Postal 

Savings 
bonds. 



On July 1, 1920 
$194,800, out 
a total issue of 
$195,400. 



of 



Par 



"The bonds herein 
authorized shall be 
exempt from all 
taxes or duties of 
the United States 
as well as from tax- 
ation in any form 
by or under State, 
municipal, or local 
authority." — Act ot 
Congress approved 
June 25, 1910 (36 
United States Stat- 
utes at Large, 
817). 



'Exempt from taxa- 
tion by or under 
State or municipal 
or local authority." 
— Treasury De- 
partment Circular 
No. 115, Division 
of Loans and Cur- 
rency, dated July 1, 
1918, virhich an- 
nounced the issue 
of these bonds. 



Authorized by Section 10 of the Act of Congress approved June 25, 
1910, which established the Postal Savings depositories. Postal 
Savings bonds were first issued on July 1, 1911. This Act was 
subsequently amended or supplemented by the Acts of Con- 
gress approved August 24, 1912, September 23, 1914, and May 
18, 1916, which further extended the Postal Savings system. 

Under the Postal Savings System depositors may convert their 
deposits, together with accrued interest, on or as of January 
1st or July 1st of any year, into Postal Savings bonds, which 
are issued by the Secretary of the Treasury and delivered within 
a month or more after January 1st or July 1st directly to the 
applicants who must be depositors. "They may, however, be 
sold or assigned to any person." 

Postal Savings bonds are issued in two forms: (I) Coupon bonds 
to bearer, and (2) Registered bonds — principal and interest — 
both in denominations of .$20, $100 and $500 only, notwith- 
standing that the .Act of June 25. 1910, authorized the issuance 
of bonds in denominations of $20, $40, $60, $80, $100 and $500. 

Coupon bonds may be exchanged for registered bonds without 
charge, but registered bonds cannot be exchanged for coupon 
bonds. 

Postal Savings bond are issued on^ or as of, January 1st and July 1st 
of each year and are "redeemable at the pleasure of the United 
States after one year from the date of their issue" at par. 
These bonds possess an extraordinary feature in that any holder 
who desires to dispose of them may make application to the 
Board of Trustees of the Postal Savings System, Washington, 
which will purchase from him all such bonds at par, but not 
with accrued interest. 

These bonds are receivable as security for Postal Savings deposits, 
but not for deposits of public money or for the issue of circu- 
lating notes by National or Federal Reserve banks. 

The Secretary of the Treasury is the Transfer Agent and the trans- 
fer books are closed from June 1st to June 30th and from 
December 1st to December 31st of each year. 



These bonds were authorized by Article IV of the Act of Congress 
approved March 8, 1918, which was officially designated as "the 
Soldiers and Sailors' Civil Relief Act." This article "provides 
that the Government will protect payments of insurance pre- 
miums in commercial companies on certain policies on the lives 
of men in the military and naval services to the extent of $5,000 
insurance on any one life. The law stipulates that premiums 
due life insurance companies in such instances shall be certi- 
fied by the Bureau of War Risk Insurance to the Secretary 
of the Treasury, and directs that, to secure the payment of such 
premiums, bonds of the United States shall be issued by the 
Secretary and registered in the names of the respective 
insurers." 

These bonds are issued in registered form only, in denominations 
of $100, $.500 and $1,000, this registration being made in the 
manner prescribed by the aforesaid Article IV. Bonds thus 
registered will be delivered to the proper officer of each insurer 
upon the monthly difference reports certified to the Secretary 
of the Treasury by the Bureau of War Risk Insurance and 
to the amount of that multiple of $100 nearest the monthly dif- 
ference thus certified in the case of the insurer, but not for less 
than $50. Other conditions attached to this issue are fully 
covered in Treasury Department Circular No. 115. 

These Soldiers and Sailors' Civil Relief bonds are subject to the 
Federal Income Tax. They are not receivable as security for 
deposits of public money or Postal Savings deposits and do 
not bear the circulation privilege. 




EXPLANATORY NOTES 

(A) CONCERNING UNITED STATES GOVERNMENT 

BONDS 

1. The principal and interest of all United States bonds are 
both payable in United States gold coin of the same stan- 
dard of weight and fineness as that prevailing at the date 
of issue. 

2. All coupons are payable to the bearer. Interest on reg- 
istered bonds, on the other hand, is paid by Government 
check directly to the person in whose name the bonds are 
registered. 

3. "Bonds, notes and Treasury certificates of indebtedness of 
the United States, of any issue, including outstanding in- 
terim certificates or receipts for payments therefor," will 
be accepted at par as security for the deposit of public 
money in National and Federal Reserve banks, as well as 
for Postal Savings deposits.— Treasury Department Cir- 
cular No. 176, Public Moneys, December 31, 1919. Also Reg- 
ulations governing the deposit of Postal Savings Funds in 
banks. Section 8, 2 (a). 

4. The following are available to National and Federal Re- 
serve banks as security for the issue of circulating notes: 

4% Loan of 1925, 

2% Consols of 1930, 

Panama Canal Loan, 2%, Series of 1916-1936, and 

Panama Canal Loan, 2%, Series of 1918-1938. 

None of the other issues of Government bonds enu- 
merated in this list bear the circulation privilege. 

(B) LIBERTY BONDS AND VICTORY LIBERTY NOTES. 
1. EXEMPTIONS FROM CERTAIN TAXES, FEDERAL OR 

OTHERWISE. 

(a) The following issues are exempt, both as to principal 

and interest, to an unlimited amount, from all taxation, 
except Estate or Inheritance taxes , nor or hereafter 
imposed by the Federal Government, any of the pos- 
sessions of the United States, any State or other local 
taxing authority — municipality included : 

First Liberty Loan, 3^% bonds of 1932-1947, and 
Victory Liberty Loan, 394% notes of 1922-1923. 

(b) All other Liberty Loan bonds bearing interest at the 
rate of 4% and 4k % — whether convertible or converted 
— as well as the Victory Liberty Loan, 4%% notes, are 
exempt, both as to principal and interest, from all 
taxation now or hereafter imposed by the Federal Gov- 
ernment, any of the possessions of the United States, 
any State or by any local taxing authority, except 

(1) Estate or Inheritance taxes, and 

(2) Surtaxes, Excess-Profits taxes and War-Profits 
taxes, now or hereafter imposed by the United 
States upon the income or profits of individuals, 
partnerships, associations or corporations. 

In other words, all 4% and 4M% Liberty 
Loan bonds, vi'hether convertible or converted, 
and all 494% Victory Liberty I^an notes are 
exempt from the normal Federal Income tax, 
as well as from all taxation by any State or 
other local taxing authority, but they are not 
exempt from Federal Income Surtaxes or from 
Estate, Inheritance, Excess-Profits or War- 
Profits taxes. 

(c) In addition to the foregoing exemptions, some of the 
4% and 4M% Liberty l^oan bonds and other Govern- 
ment obligations are entitled to certain limited exemp- 
tion from Federal Income Surtaxes and from Excess- 
Profits and War-Profits taxes. These additional 
exemptions apply specifically to the interest derived 
from the following amounts of principal — or par value 

— of the issues enumerated below: 
$5,000 principal in the aggregate of 

First Liberty Loan, Converted 4% bonds of 1932- 
1947; 

First Liberty Loan, Converted 4M% bonds of 1932- 
1947; 

First Liberty Loan, Second Converted 4%% bonds 
of 1932-1947 • 

Second Liberty Loan, 4% Convertible bonds of 
1927-1942* 

Second Liberty Loan, Converted 4M% bonds of 
1927-1942; 

Third Liberty Loan, 4M% bonds of 1928; 

Fourth Liberty Loan, 4M% bonds of 1933-1938; 

Treasury Certificates of Indebtedness, and 

United States War-Savings Certificates. 

(Section 7 of the Act of Congress approved 
September 24, 1917— the Second Liberty Bond 
Act — as amended and supplemented.) 
$30,000 principal in the aggregate of 

First Liberty Loan, Second Converted 4M% bonds 
of 1932-1947 untU the expiration of two years 
after the termination of the war with Germany 
as fixed by proclamation of the President. 



(Section 1, Paragraph (3) of the Act of Con- 
gress approved September 24, 1918 — Supplement 
to Second Liberty Bond Act.) 
$30,000 principal in the aggregate of 

Fourth Liberty Loan, 4^4% bonds of 1928 until two 
years after the termination of the war with 
Germany as fixed by proclamation of the 
President. 

(Section 1, Paragraph (1) of the Act of Con- 
gress approved September 24, 1918 — Supple- 
ment to Second Liberty Bond Act.) 
$30,000 principal in the aggregate of 

First Liberty Loan, Converted 4% bonds of 1932- 

1947, 
First Liberty Loan, Converted 4M% bonds of 1932- 

1947, 
First Liberty Loan, Second Converted 4M% bonds 

of 1932-1947, 
Second Liberty Loan, 4% Convertible bonds of 1927- 

1942, 
Second Liberty Loan, Converted 4M% bonds of 

1927-1942 
Third Liberty Loan, 4M% bonds of 1928. and 
Fourth Liberty Loan, 4M% bonds of 1933-1938. 

This exemption applies to the interest received, 
on and after January 1, 1919, and until the expi- 
ration of five years after the termination of war 
with Germany as fixed by Presidential proclama- 
tion, on $30,000 principal of the issues specified 
above. 

(Section 2 (a) of the Act of Congress approved 
March 3, 1919— the Victory Liberty Loan Act.) 
$45,000 principal in the aggregate of 

First Liberty I^oan, Converted 4% bonds of 1932- 

1947, 
First liberty Loan, Converted 4M% bonds of 1932- 

1947, 
Second Liberty Loan, 4% Convertible bonds of 1927- 

1942, 
Second Liberty Loan, Converted 4M% bonds of 

1927-1942, and 
Third Liberty Loan, 4M% bonds of 1928. 

This exemption applies to the interest, received 
after January 1, 1918, and until two years after 
the termination of the war with Germany as fixed 
by proclamation of the President, on $30,000 par 
value of the bonds above specified. This exemption 
is, moreover, conditional upon the holder's having 
made an original subscription to two-thirds as many 
($30,000) bonds of the Fourth Liberty Loan and 
upon his having held those bonds continuously from 
the time of his original subscription until the date 
of his tax return. 

(Section 1, Paragraph (2) of the Act of Con- 
gress approved September 24, 1918 — Supplement 
to Second Liberty Bond Act.) 
$20,000 principal in the aggregate of 

First Liberty I»an, Converted 4% bonds of 1932- 

1947, 
First Liberty Loan, Converted 4M% bonds of 1932- 

1947, 
First Liberty Loan, Second Converted 4M% bonds 

of 1932-1947, 
Second Liberty Loan, 4% Convertible! bonds of 1927- 

1942, 
Second Liberty Loan, Converted 4M% bonds of 1927- 

1942, 
Third Liberty Loan, 4M% bonds of 1928, and 
Fourth Liberty Loan, 4M% bonds of 1933-1938. 

This exemption applies to the interest received, 
on and after January 1, 1919, on $20,000 par value 
of the bonds thus specified. Furthermore, it is con- 
ditional upon the holder's having made an original 
subscription to one-third as many notes (either 
494% or 394% or both) of the Victory Liberty 
Loan and upon his having held such an amount of 
these notes continuously from the time of his orig- 
inal subscription until the date of his tax return. 
No limitation as to time was placed upon this ex- 
emption which, consequently, terminates only upon 
the maturity of the notes of the Victory Liberty 
Loan. 

(Section 2 (b) of the Act of Congress approved 
March 3, 1919— the Victory Liberty Loan Act.) 

$160,000 principal (or par value) of Liberty Loan bonds 
constitutes the total possible amount, the interest on 
which can be exempt from Federal Income Sur- 
taxes, Excess-Profits and War-Profits taxes subject 
to the restrictions enumerated above. 

2. EXEMPTION FROM TAXES OF ALL LIBERTY LOAN 
BONDS AND VICTORY LIBERTY NOTES IF HELD BY 
FOREIGNERS. ,.,.., 

All "bonds, notes, and certificates of indebtedness oi 
the United States and bonds of the War Finance Cor- 



[Page Eleven] 



poration shall, while beneflolally owned by a non- 
resident alien individual, or a foreign corporation, 
partnership, or association, not engaged in business in 
the United States, be exempt both as to principal and 
interest from any and all taxation now or hereafter 
imposed by the I'nited States, any State, or any of the 
possessions of the United States or by any local taxing 
authority." * , ,. .. 

(Section 4 of the Act of Congress approved IMarch 

3, 1919— the Victory Liberty Loan Act— amending 
Section 3 of the Fourth Liberty Bond Act ap- 
proved July 9. 1918.) 

3. CKRTAIN LIHKKT^ BONDS AND VKTORY LIUKKTY 
NOTKS ARE RFXKIVABLK AT PAR IN PAYiMKNT (>F 
FEDERAL ESTATE AND INHERITANCE TAXES. 

.All iW7c Liberty Loan bonds and all 4%7o Victory 
Liberty notes "which have been owned by any person 
continuously for at least six months prior to the date 
of his death, and which upon such date constitute part 
of his estate, shall, under rules and regulations pre- 
scril)ed by the Secretary of the Treasury, be receiv- 
able by the I'nited States at par and accrued interest 
in payment of any estate or inheritance taxes imposed 
by the I'nited States, under or by virtue of any pres- 
ent or future law upon such estate or the inheritance 
thereof." 

(Section 6 of the Act of Congress approved April 

4, 1918— the Third Liberty Bond Act— supple- 
mented by Section 1 (d) of the Act of March 3, 
1919 — the Victory Liberty Loaji Act.) 

4. CONVERSION PRIVILEGES. 

The First Liberty Loan, Converted 4% bonds of 1932- 
1947 are convertible into the First Liberty Loan, 
Converted 4M7o bonds of 1932-1947. 

The Second Liberty Loan, 4% Convertible bonds of 
1927-1942 are convertible into the Second Liberty 
Loan, Converted 4M% bonds of 1927-1942. 

The Victory Liberty Loan, 4M% Convertible notes of 
1922-1923 are convertible into the Victory Lib- 
erty Loan, 3?47o Convertible notes of 1922-1923, and 
vice versa. 

"No other conversion privileges are extant." — Treasury 
Department, Form L & C 400, revised June, 1920. 

Whenever an issue of Liberty I^oan bonds is converted 
into another issue, the terms and features of the 
former become identical with those of the latter, 
except that the bonds thus converted retain 

(1) their original interest dates, 

(2) their original date of maturity of the principal, 
and 

(3) their original terms of redemption. 

5. BOND PURCHASE FUND. 

By virtue of SMtion 6 of the Act of Congress approved 
April 4, 1918— the Third Liberty Bond Act — which 
amended the Second Liberty Bond Act, the Secretary 
of the Treasury was authorized to purchase, "from 
time to time, until the expiration of one year after 
the termination of the war," bonds issued under au- 
thority of the Second and Third Liberty Bond Acts, 
including converted bonds, at an average cost during 
any period of twelve months not to "exceed par and 
accrued interest." It was specifically provided that 
"The par amonnt of bonds of any such series which may 
be purchased in the twelve months' period beginning 
on the date of issue shall not exceed one-twentieth of 
the par amoimt of bonds of such series originally is- 
sued, and in each twelve months' period thereafter, 
shall not exceed one-twentieth of the amount of the 
bonds of such series outstanding at the beginning of 
such twelve months' period." 

The Bond Purchase Fimd was subsequently made ap- 
plicable to the Fourth Liberty I»an and to the 3%% 
and 4%% notes of the Victory Liberty Loan, but not 
to the First Liberty Loan, 3^6% bonds of 1932-1947 
(unconverted). All bonds purchased were promptly 
retired and cancelled, the purpose for Which this 
fund was created being "to maintain the stability of 
the market for Government securities." The Bond 
Purchase Fiuid ceased to be operative on July 1, 1920, 
when it was superseded by the Cumulative Sinking 
Fund. 

6. CUMULATIVE SINKING FUND. 

Section 6 (a) of the Act of Congress approved March 
3. 1919— the Victory Liberty Loan Act — created a 
Cumulative Sinking Fund for the retirement of the 
bonds of the First, Second, Third and Fourth Liberty 
Loans — both convertible and converted — and the notes 
of the Victory Liberty Loan either by payment at ma- 
turity or by redemption or purchase prior thereto. 
"The average cost of the bonds and notes purchased 
shall not exceed par and accrued interest" and, more- 



over, all "bonds and notes purchased, redeemed, or paid 
out of the sinliing fund shall be canceled and retired 
and shall not be reissued." 

This Section provided that "For the fiscal year be- 
ginning July 1, 1920, and for each fiscal year there- 
after, initil all such bonds and notes are retired there 
is hereby appropriated, out of any money in the Treas- 
ury not otherwise appropriated, for the purposes of 
such sinking fund, an amount equal to the sum of (1) 
2% per centum of the aggregate amount of such bonds 
and notes outstanding on July 1, 1920, less an amoimt 
equal to the par amount of any obligations of foreign 
Governments held by the I'nited States on July 1, 
1920, and (2) the interest which would have been 
payable during the fiscal year for which the appro- 
priation is made on the lionds and notes purchased, 
redeemed, or paid out of the sinking fund during such 
year or in previous years." 

Section 6 (b) of this same Act repealed the Revised 
Statutes which had created a Sinking Fiuul consisting 
of "a permanent annual appropriation of 1 per cen- 
tum of the entire debt of the United States," for the 
reason that this former Sinking Fund "had proved 
unworkable and resulted in nothing more or less than 
a bookkeeping account." 

7. TRANSFER AGENT AND TRANSFER BOOKS. 

(a) The Transfer Agent for all issues of Liberty Loan 
bonds and Victory Liberty Loan notes is the Office of 
the Secretary of the Treasury, Division of Loans and 
Currency, Treasury Department, Washington, D. C. 

(b) Transfer Books. 

(1) For the First Liberty Loan, including the 

First Liberty Loan, ^%% bonds of 1932-1947 

(known by the short title of "First 3^^'s"), 
First Liberty Loan, Converted 4% bonds of 1932- 

1947 (known as the "First 4's"), 
First Liberty Loan, Converted 4M% bonds of 

1932-1947 (known as the "First 4M's") and 
First Liberty Loan, Second Converted 4M% bonds 

of 1932-1947 (known as the "First Second 

4M's"), 
the transfer books are closed from the close of 
business on May 1.5th to the opening of business 
on June 16th and from the close of business on 
November 15th to the opening of business on De- 
cember 16th of each year. 

(2) For the Second Liberty Loan, including the 
Second Liberty Loan, 4% Convertible bonds of 

1937-1942 (known as the "Second 4's") and the 
Second Liberty Loan, Converted 4M% bonds of 

1927-1942 (known as the "Second 4M's"), 
the transfer books are closed from the close of 
business on April 15th to the opening of business 
on May 16th and from the close of business on 
October 15th to the opening of business on No- 
vember 16th of each year. 
(3) For the Third Liberty I.oan, 4M% bonds of 1928 
(known as the "Third 4M's"), the transfer books 
are closed from the close of business on February 
15th to the opening of business on March 16th 
and from the jclose of business-^on August 15th 
to the opening of business on September 16th of 
each year. 

(4) For the Fourth Lihertv Loan, 4M% bonds of 1933- 

1938 (known as the "Fourth 4M's"). the transfer 
books are closed from the close of business on 
March 15th until the opening of business on Anril 
16th and from the close of business on Seotemher 
15th until the opening of business on October 16th 
of each year. 

(5) For the Victory Liberty Loan, including the 
Victorv Liberty Loan, 4?4% Convertible notes of 

1922-1923 (known as the "Victory 4?4's") 

and the 
Victory Libertj- I>oan, 394% Convertible notes of 

1922-1923 (known as the "Victory 3%'s"), 
the transfer books are closed from the close of 
business on May 15th until the opening of busi- 
ness on June 16th and from the close of business 
on November 15th until the opening of business 
on December 16th during the years 1920, 1921 and 
1922. The transfer books will also be closed at 
the close of business on April 20, 1923, prepara- 
tory to the final payment of interest on May 20, 
1923. 

The above information, together with the vari- 
ous Rules and Regulations concerning transac- 
tloils in liberty Bonds and Victory Notes, will be 
found in Treasury Department Circular No. 141, 
Loans and Currency, dated September 15, 1919. 



W. B. HiBBs AND Company 



MEMBERS 

NEW YORK STOCK EXCHANGE 
BOSTON STOCK EXCHANGE 
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WASHINGTON STOCK EXCHANGE 
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CHICAGO BOARD OF TRADE 



HiBBS Building 
Washington. D C. 



'TT^HE information herein contained has 
-'- been taken from authoritative sources and 



is believed to be correct, 
hovyever, guaranteed. 



Its accuracy is not, 



August 18, 1920. 



I 



W. F. WBEfiTS CO. WA8HIMT0N D. C-